The Motley Fool

Got $1,000? Here Are 2 of the Fastest-Growing Tech Stocks to Buy Today

Image source: Getty Images

The stock market may seem intimidating at first, but once you understand the true value of compounded returns from long-term investing, it’s hard not to get excited about the growth potential of your savings. 

Purchasing stocks is only half the battle, though. The other half comes from not panic selling during market downturns.

Earlier this year, the Canadian market dropped an incredible 35% in just over one month. Many Canadian investors that could not handle the steep market decline decided they were better off selling and re-entering the market at a later time. The problem with that logic is that no one is able to confidently determine when the market will bottom out. 

The market surge that followed the 35% decline is a perfect scenario of why investors are far better off just staying the course and not selling during market declines. After dropping more than 35%, the  S&P/TSX Composite Index has risen close to 50% over the past six months.

Ready to invest?

Whether you are saving for your first home, or for retirement, investing a portion of your savings into stocks is a wise choice. Even if you have just $50 to invest, don’t let that stop you from exploring the stock market.

To prove it to you, I’ve covered two of my favourite growth stocks in the Canadian stock market today, each of which is trading a price below $50. I’ve reviewed both companies and highlighted why I believe they each have a huge amount of growth potential.

Docebo

The COVID-19 pandemic will likely have lasting effects on many companies across the globe. For some, it has created massive headwinds. For others, it’s done the opposite.

Docebo (TSX:DCBO) has seen its stock price grow by more than 150% since the beginning of 2020. The tech company isn’t showing any signs of slowing down just yet either.

The $1 billion company is in the business of developing training platforms for employees, customers, and partners. The platforms are leveraged by AI-driven technology, with an aim of personalizing the learning experience for each individual user.

The COVID-19 pandemic caused an abrupt shift for many employees from the traditional office space to a home office. Not long ago, Docebo management commented that this has already led to an increase in demand in the tech company’s products and services.  

Absolute Software

This tech company may be much older than Docebo but is still only valued at a market cap of just $500 million. That doesn’t mean it doesn’t have the potential to me a multi-bagger, though. 

Absolute Software (TSX:ABT) stock is up 50% year to date in comparison to the broader Canadian market, which is down by 5%.

This tech company also stands to see a rise in demand caused by market-changing tailwinds created by the COVID-19 virus. 

Absolute Software provides cloud-based cybersecurity products and services to enterprise-level customers. After seeing a significant increase in employees working from home over the past six months, the dependence on Absolute Software’s technology has only increased.

Foolish bottom line

If the stock market has taught investors one lesson this year, it’s that predicting short-term market movements is a fool’s game. Rather than wasting time and effort trying to get in and out of positions frantically, investors should instead be Foolishly looking for market-leading companies to buy and hold for the long term.

Buying shares of a market-leading company also doesn’t take a huge sum of cash either. Both of the companies I’ve covered are trading below $50 today. 

If you’re looking for a multi-bagger over the long term, I’d seriously consider picking up shares of at least one of these high-flying tech stocks.

If you're looking for high-flying growth stocks, you'll want to check this out too...

This Tiny TSX Stock Could Be the Next Shopify

One little-known Canadian IPO has doubled in value in a matter of months, and renowned Canadian stock picker Iain Butler sees a potential millionaire-maker in waiting...
Because he thinks this fast-growing company looks a lot like Shopify, a stock Iain officially recommended 3 years ago - before it skyrocketed by 1,211%!
Iain and his team just published a detailed report on this tiny TSX stock. Find out how you can access the NEXT Shopify today!

Click here to discover how!

Fool contributor Nicholas Dobroruka has no position in any of the stocks mentioned.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss an important event.

Iain Butler and the Stock Advisor Canada team only publish their new “buy alerts” twice a month, and only to an exclusively small group.

This is your chance to get in early on what could prove to be very special investment advice.

Enter your email address below to get started now, and join the other thousands of Canadians who have already signed up for their chance to get the market-beating advice from Stock Advisor Canada.

I consent to receiving information from The Motley Fool via email, direct mail, and occasional special offer phone calls. I understand I can unsubscribe from these updates at any time. Please read the Privacy Statement and Terms of Service for more information.